Price-Indexed Bonds: Trimming $12 Billion from the Deficit
Publication Date: May 1985
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): John M. Palffy
Research Area: Banking and finance
Keywords: Budget
Type: Report
Abstract:
The deficit problem has legislators scrambling for ways to save money in the federal budget. In this quest, it is almost universally assumed that interest on the $1.6 trillion national debt is an item that cannot be cut. This consensus is wrong. Interest outlays in fact can be trimmed through price-indexed bonds, a device that Congress should consider.
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